Since the advent of civil aviation, air transport has experienced almost continuous growth. However this growth has also led to an increase in emissions which contribute to climate change. The exclusion of international aviation emissions from the targets under the Kyoto Protocol means that little action has been taken to address this impact. In 2005, the European Commission set out its comprehensive approach for addressing aviation's impact on climate change and in December 2006 made a legislative proposal for the inclusion of aviation in the EU Emissions Trading Scheme. Both the Council and the European Parliament broadly support the Commission's proposal but have proposed detailed amendments to the proposed legislation. This Article analyses the position adopted by each institution so far and the next steps for the adoption of the legislation.